By Menu & Margin editorial team · Published · Updated
Calculator
Prime cost percentage
Prime cost is food cost plus labor cost for the same period, divided by sales. Use your own closed-week numbers—targets vary by concept and market.
COGS for the period (or use the food cost calculator first)
Wages, employer taxes, and benefits for the period
Prime cost
—
Food + labor$0
Formula
Prime cost % = (Food cost + Labor cost) ÷ Sales × 100
Worked example
Food cost $18,000 + labor cost $14,000 = $32,000 prime dollars. Sales $55,000 → prime cost % = 32,000 ÷ 55,000 × 100 = 58.2%. Trend that against your last four closed weeks.
Many independents watch prime cost as a primary operating metric. Published “ideal” ceilings differ by service style and wage market—compare against your own history before chasing a round number.
Related: food cost % · labor cost % · Money hub